PLAN OF CONVERSION


 


THE SPENDSMART PAYMENTS COMPANY, a Colorado
corporation,


 


INTO


 


THE SPENDSMART PAYMENTS COMPANY, a Delaware
corporation


 


This PLAN OF CONVERSION
(this "Plan"), dated as of June 16, 2014 and effective as of June 20, 2014, is hereby adopted and approved by The SpendSmart
Payments Company, a Colorado corporation (“SpendSmart–Colorado”), in order to set forth the terms,  conditions
and procedures governing the conversion of SpendSmart-Colorado into a Delaware corporation pursuant to Sections 7-90-201 and 7-90-202
of the Colorado Business Corporations Act (as amended, the “CBCA”) and Section 265 of the Delaware General Corporation
Law (as amended, the “DGCL”).


 


WHEREAS, SpendSmart-Colorado's
board of directors has approved the Conversion (as defined below) and recommended the same to SpendSmart-Colorado's shareholders,
and such shareholders have approved the Conversion, all in accordance with the CBCA and DGCL.


 


NOW, THEREFORE, SpendSmart-Colorado
does hereby adopt this Plan to effectuate the conversion of SpendSmart-Colorado into a Delaware corporation as follows:


 


1.          Conversion;
Effect of Conversion. Upon and subject to the terms and conditions of this Plan and pursuant to the relevant provisions of
the CBCA and the DGCL, including, without limitation, Sections 7-90-201 and 7-90-202 of the CBCA and Section 265 of the DGCL, SpendSmart-Colorado
shall convert (referred to herein as the “Conversion”) into a Delaware corporation named “The SpendSmart Payments
Company” (referred to herein as “SpendSmart-Delaware”) at the Effective Time (as defined below). SpendSmart-Delaware
shall thereafter be subject to all of the provisions of the DGCL, except that notwithstanding Section 106 of the DGCL, the existence
of SpendSmart-Delaware shall be deemed to have commenced on the date SpendSmart-Colorado commenced its existence in Colorado. Following
the Conversion, SpendSmart-Delaware shall, for all purposes of the laws of the State of Delaware, be deemed to be the same entity
as SpendSmart-Colorado. Upon the Effective Time, all of the rights, privileges and powers of SpendSmart-Colorado, and all property,
real, personal and mixed, and all debts due to SpendSmart-Colorado, as well as all other things and causes of action belonging
to SpendSmart-Colorado, shall remain vested in SpendSmart-Delaware and shall be the property of SpendSmart-Delaware and the title
to any real property vested by deed or otherwise in SpendSmart-Colorado shall not revert or be in any way impaired, but all rights
of creditors and all liens upon any property of SpendSmart-Colorado shall be preserved unimpaired, and all debts, liabilities and
duties of SpendSmart-Colorado shall remain attached to SpendSmart-Delaware and may be enforced against it to the same extent as
if said debts, liabilities and duties had originally been incurred or contracted by it in its capacity as a Delaware corporation.
The rights, privileges, powers and interests in property of SpendSmart-Colorado, as well as the debts, liabilities and duties of
SpendSmart-Colorado, shall not be deemed, as a consequence of the Conversion, to have been transferred to, but shall remain vested
in, SpendSmart-Delaware for any purpose of the laws of the State of Delaware. The Conversion shall not be deemed to affect any
obligations or liabilities of SpendSmart-Colorado incurred prior to the Effective Time or the personal liability of any person
incurred prior thereto. SpendSmart-Colorado shall not be required to wind up its affairs or pay its liabilities and distribute
its assets, and the Conversion shall not be deemed to constitute a dissolution of SpendSmart-Colorado and shall constitute a continuation
of the existence of SpendSmart-Colorado in the form of a Delaware corporation. SpendSmart-Colorado is the same entity as SpendSmart-Delaware.


 




    	 



    	 



    

 


2.         Certificate
of Conversion; SpendSmart-Delaware Charter Documents; Effective Time.  The Conversion shall be effected by the filing
with the Secretary of State of the State of Colorado of a duly executed Statement of Conversion meeting the requirements of Section
7-90-201 of the CBCA (the “Colorado Statement of Conversion”) and the filing with the Secretary of State of the State
of Delaware of: (a) a duly executed Certificate of Conversion meeting the requirements of Section 265 of the DGCL (the “Delaware
Certificate of Conversion”), and (b) a Certificate of Incorporation of "The SpendSmart Payments Company”, substantially
in the form of Exhibit A attached hereto (the "Certificate of Incorporation"). Subject to the foregoing, the Conversion
shall be effective upon the filing of (i) the Colorado Conversion with the Secretary of State of Colorado and (ii) the Delaware
Certificate of Conversion and the Certificate of Incorporation with the Secretary of State of Delaware (the “Effective Time”).


 


3.         Governance
and Other Matters Related to SpendSmart-Delaware.


 


(a)          Bylaws. The
Board of Directors of SpendSmart-Delaware intend to adopt Bylaws for SpendSmart-Delaware (the "Bylaws"). 


 


(b)          Directors
and Officers. The officers and directors of SpendSmart-Delaware immediately after the Effective Time shall be the officers
and directors of SpendSmart-Colorado immediately prior to the Effective Time. SpendSmart-Colorado and, after the Effective Time,
SpendSmart-Delaware and its Board of Directors, shall take any necessary actions to cause each of such individuals to be appointed
as an officer and/or director, if necessary, of SpendSmart-Delaware, or to confirm such appointments. 


 


4.         Effect
of the Conversion on the Capital Stock of SpendSmart-Colorado. Subject to the terms and conditions of this Plan, at the Effective
Time, automatically by virtue of the Conversion and without any further action on the part of SpendSmart-Colorado, SpendSmart-Delaware
or any capital stock holder thereof, the capital stock of SpendSmart-Colorado, whether common stock or preferred stock (the “Colorado
Capital Stock Stock”), shall be converted as follows: 


 


(a)          Conversion
of SpendSmart-Colorado Common Stock. Each issued and outstanding share of Colorado Capital Stock shall automatically,
without the surrender of stock certificates or any further action on the part of the holder or the payment of any additional consideration,
be converted into one (1) validly issued, fully paid and nonassessable share of common stock or preferred stock, as applicable,
of SpendSmart-Delaware (the “Delaware Capital Stock”). SpendSmart-Delaware shall not issue fractional shares with respect
to the Conversion.  Following the Effective Time, all Colorado Capital Stock shall no longer be outstanding and shall
automatically be canceled and retired and shall cease to exist, and each holder of Colorado Capital Stock immediately prior to
the Effective Time shall cease to have any rights with respect thereto. 


 


(b)          Certificates. At
and after the Effective Time, all of the outstanding certificates which immediately prior thereto represented shares of Colorado
Capital Stock or options, warrants, convertible debentures, preferred stock or other securities of SpendSmart-Colorado shall be
deemed for all purposes to evidence ownership of and to represent shares of Delaware Capital Stock, or options, warrants, convertible
debentures, preferred stock or other securities of SpendSmart-Delaware, as the case may be, into which the shares of Colorado Capital
Stock, or options, warrants, convertible debentures or other securities of SpendSmart-Colorado represented by such certificates
have been converted as herein provided and shall be so registered on the books and records of SpendSmart-Delaware or its transfer
agent. Each holder of record of a stock certificate of Colorado Common Stock shall surrender such certificate or certificates to
SpendSmart-Delaware or its transfer agent and, upon such surrender, receive in exchange therefor a new certificate or certificates
evidencing and representing the number of shares of Delaware Capital Stock to which such holder is entitled. Notwithstanding the
foregoing, the registered owner of any such outstanding certificate shall, until such certificate shall have been surrendered for
transfer or otherwise exchanged, have and be entitled to exercise any voting and other rights with respect to, and to receive any
dividends and other distributions upon, the shares of Delaware Capital Stock, or options, warrants, purchase rights or other securities
of SpendSmart-Delaware, if any, as the case may be, evidenced by such outstanding certificate, as above provided.


 




    	 



    	 



    

 


5.          Filings,
Licenses, Permits, Titled Property, Etc. As necessary, following the Effective Time, SpendSmart-Delaware shall apply for
new tax identification numbers, qualifications to conduct business (including as a foreign corporation), licenses, permits and
similar authorizations on its behalf and in its own name in connection with the Conversion. As required or appropriate, following
the Effective Time, all real, personal or intangible property of SpendSmart-Colorado which was titled or registered in the name
of SpendSmart-Colorado shall be re-titled or re-registered, as applicable, in the name of SpendSmart-Delaware by appropriate filings
and/or notices to the appropriate parties (including, without limitation, any applicable governmental agencies). 


 


6.          Further
Assurances. If, at any time after the Effective Time, SpendSmart-Delaware shall determine or be advised that any deeds,
bills of sale, assignments, agreements, documents or assurances or any other acts or things are necessary, desirable or proper,
consistent with the terms of this Plan, (a) to vest, perfect or confirm, of record or otherwise, in SpendSmart-Delaware its right,
title or interest in, to or under any of the rights, privileges, immunities, powers, purposes, franchises, properties or assets
of SpendSmart-Colorado, or (b) to otherwise carry out the purposes of this Plan, SpendSmart-Delaware and its proper officers and
directors (or their designees), are hereby authorized to solicit in the name of SpendSmart-Colorado any third-party consents or
other documents required to be delivered by any third-party, to execute and deliver, in the name and on behalf of SpendSmart-Colorado
all such deeds, bills of sale, assignments, agreements, documents and assurances and do, in the name and on behalf of SpendSmart-Colorado,
all such other acts and things necessary, desirable or proper to vest, perfect or confirm its right, title or interest in, to or
under any of the rights, privileges, immunities, powers, purposes, franchises, properties or assets of SpendSmart-Colorado and
otherwise to carry out the purposes of this Plan and the Conversion. 


 


7.          Implementation
and Interpretation; Termination and Amendment. This Plan shall be implemented and interpreted, prior to the Effective
Time, by the Board of Directors of SpendSmart-Colorado and, following the Effective Time, by the Board of Directors of SpendSmart-Delaware,
(a) each of which shall have full power and authority to delegate and assign any matters covered hereunder to any other party(ies),
including,  without limitation, any officers of SpendSmart-Colorado or SpendSmart-Delaware, as the case may be, and (b)
the interpretations and decisions of which shall be final, binding, and conclusive on all parties. The Board of Directors of SpendSmart-Colorado
or the Board of Directors of SpendSmart-Delaware, as applicable, at any time and from time to time, may terminate, amend or modify
this Plan. 


 


8.          Third
Party Beneficiaries. This Plan shall not confer any rights or remedies upon any person or entity other than as expressly
provided herein. 


 


9.          Severability. Whenever
possible, each provision of this Plan will be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of this Plan is held to be prohibited by or invalid under applicable law, such provision will be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of this Plan. 


 


10.        Governing
Law. This Plan shall be construed in accordance with and governed by the laws of the State of New York, without regard
to the conflict of laws provisions thereof.


 




    	 



    	 



    

 


IN WITNESS WHEREOF,
The SpendSmart Payments Company has caused this Plan to be executed by its duly authorized representative as of the date first
stated above.


 


The SpendSmart Payments Company,
a Colorado corporation


 


	By:	 	 
	Name: 	 	 
	Title:	 	 


 


The SpendSmart Payments Company,
a Delaware corporation


 


	By:	 	 
	Name: 	 	 
	Title: